You've no doubt heard about the refundable federal income tax credit for first-time or long-term homebuyers who purchase a new home. But you may be wondering what credits or deductions are available if you're already a homeowner and you're not planning to move.
For 2009 returns, homeowner tax breaks include:
An increased standard deduction for real estate taxes paid. Real estate taxes are deductible when you itemize — and sometimes when you don't. If you paid real estate taxes on your home during 2009 but you're not able to itemize, you can increase your standard deduction by up to $500 ($1,000 when you're married filing a joint return).
An itemized deduction for mortgage insurance premiums. Premiums paid during 2009 for insurance on the mortgage used to acquire your home may be deductible. You'll have to itemize to claim the deduction, which begins to phase out when your adjusted gross income exceeds $100,000.
Credits for energy-efficient improvements. Did you add insulation, exterior windows, or a new heating or air conditioning system to your home in 2009? You might qualify for a credit of 30% of the cost (up to $1,500) for making energy-saving improvements.
Homeowner tax breaks also include an itemized deduction for mortgage interest and points, the home office deduction, and an income exclusion when you sell your home. Please contact our office if you need details or filing assistance.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
